Dycom Industries (DY) 8-K Dycom Announces Fiscal 2007 Second Quarter Earnings and Provides Guidance for the Third Quarter of Fiscal 2007

EXHIBIT 99.1

NEWS RELEASE

FOR IMMEDIATE RELEASE	Contact:	Steven E. Nielsen, President and CEO
		Richard L. Dunn, Senior Vice President
		and CFO
		(561) 627-7171

Palm Beach Gardens, Florida February 27, 2007

DYCOM ANNOUNCES FISCAL 2007 SECOND QUARTER EARNINGS AND
PROVIDES GUIDANCE FOR THE THIRD QUARTER OF FISCAL 2007

Palm Beach Gardens, Florida, February 27, 2007—Dycom Industries, Inc. (NYSE Symbol: “DY”) announced its results today for the second quarter ended January 27, 2007. The Company reported income from continuing operations and net income for the quarter ended January 27, 2007 of $5.6 million, or $0.14 per common share diluted, versus income from continuing operations and net income for the quarter ended January 28, 2006 of $3.9 million, or $0.10 per common share diluted. Total contract revenues from continuing operations for the quarter ended January 27, 2007 were $258.3 million compared to $237.1 million for the quarter ended January 28, 2006, an increase of 8.9%. Stock based compensation expense for the quarter ended January 27, 2007 and quarter ended January 28, 2006 was $1.6 million and $0.9 million, respectively, on a pre-tax basis.

For the six months ended January 27, 2007 income from continuing operations was $15.2 million, or $0.37 per common share diluted. For the six months ended January 28, 2006 income from continuing operations was $14.4 million, or $0.33 per common share diluted. Net income was $15.1 million, or $0.37 per common share diluted for the six months ended January 27, 2007, versus net income of $14.6 million, or $0.33 per common share diluted for the six months ended January 28, 2006. Total contract revenues from continuing operations for the six months ended January 27, 2007 were $528.8 million compared to $490.7 million for the six months ended January 28, 2006, an increase of 7.8%. Stock based compensation expense for the six months ended January 27, 2007 and the six months ended January 28, 2006 was $3.3 million and $1.9 million, respectively, on a pre-tax basis.

The Company has reported the results of Apex Digital, LLC as discontinued operations in the accompanying financial information. In August 2006, Apex notified its primary customer of its intention to cease performing installation services in February 2007. Effective December 2006, this customer transitioned its installation service requirements to other providers.

Dycom also announced its outlook for the third quarter of fiscal 2007. The Company currently expects revenue from continuing operations for the third quarter of fiscal 2007 to range from $275 million to $295

million and diluted earnings per share from continuing operations to range from $0.23 to $0.28, including stock based compensation expense of approximately $1.5 million on a pre-tax basis. Management believes that discontinued operations will not have a material impact on the quarter.

A Tele-Conference call to review the Company’s results and address its outlook will be hosted at 9:00 a.m. (ET), Wednesday, February 28, 2007; Call 877-209-0397 (United States) or 612-332-1213 (International) and request “Dycom Earnings” conference call.A live webcast of the conference call will be available athttp://www.dycomind.com. If you are unable to attend the conference call at the scheduled time, a replay of the live webcast will also be available athttp://www.dycomind.com until Friday, March 30, 2007.

Dycom is a leading provider of specialty contracting services throughout the United States. These services include engineering, construction, maintenance and installation services to telecommunications providers, underground locating services to various utilities, including telecommunications providers, and other construction and maintenance services to electric utilities and others.

Fiscal 2007 second quarter and six-month results are preliminary and are unaudited. This press release contains forward-looking statements as contemplated by the 1995 Private Securities Litigation Reform Act. Such statements include, but are not limited to, the Company’s expectations for revenues, stock-based compensation expense and earnings per share. These statements are based on management’s current expectations, estimates and projections. Forward-looking statements are subject to risks and uncertainties that may cause actual results in the future to differ materially from the results projected or implied in any forward-looking statements contained in this press release. Such risks and uncertainties include: business and economic conditions in the telecommunications industry affecting our customers, the adequacy of our insurance and other reserves and allowances for doubtful accounts, whether the carrying value of our assets may be impaired, whether our recent acquisition can be efficiently integrated into our existing operations, the impact of any future acquisitions, the anticipated outcome of other contingent events, including litigation, liquidity needs and the availability of financing, as well as other risks detailed in our filings with the Securities and Exchange Commission. The Company does not undertake to update forward-looking statements.

—Tables Follow—

NYSE: “DY”

DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
January 27, 2007 and July 29, 2006
Unaudited

	January 27,		July 29,
	2007		2006
	($ in 000's)
ASSETS
Current Assets:
Cash and equivalents	$	14,445	$	27,268
Accounts receivable, net		120,052		143,099
Costs and estimated earnings in excess of billings		80,886		79,546
Deferred tax assets, net		14,216		12,793
Inventories		8,350		7,095
Other current assets		12,646		9,311
Current assets of discontinued operations		6,152		5,196
Total current assets		256,747		284,308
Property and equipment, net		154,354		125,393
Intangible assets, net		319,113		265,133
Other		13,371		13,928
Non-current assets of discontinued operations		121		1,253
Total	$	743,706	$	690,015
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	26,668	$	25,715
Current portion of debt		3,343		5,169
Billings in excess of costs and estimated earnings		584		397
Accrued self-insured claims		28,410		25,886
Income taxes payable		1,198		4,979
Other accrued liabilities		45,871		44,337
Current liabilities of discontinued operations		5,047		5,311
Total current liabilities		111,121		111,794
Long-term debt		174,517		150,009
Accrued self-insured claims		30,689		30,770
Deferred tax liabilities, net non-current		17,357		6,576
Other liabilities		1,310		289
Non-current liabilities of discontinued operations		1,283		1,122
Stockholders’ Equity		407,429		389,455
Total	$	743,706	$	690,015

NYSE: “DY”

DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited

	Three Months			Three Months			Six Months			Six Months
	Ended			Ended			Ended			Ended
	January 27,			January 28,			January 27,			January 28,
	2007			2006			2007			2006
	(In 000's, except per share amounts)
Contract revenues	$	258,293		$	237,091		$	528,846		$	490,733
Cost of earned revenues		210,771			196,994			428,536			404,272
General and administrative expenses (1)		21,395			18,552			43,074			37,377
Depreciation and amortization		14,142			11,776			26,637			22,817
Total		246,308			227,322			498,247			464,466
Interest income		234			523			627			1,212
Interest expense		(3,953	)		(4,007	)		(7,710	)		(4,873	)
Other income, net		1,129			240			1,624			1,325
Income from continuing operations before income taxes		9,395			6,525			25,140			23,931
Provision for income taxes		3,747			2,654			9,966			9,540
Income from continuing operations		5,648			3,871			15,174			14,391
Income (loss) from discontinued operations, net of tax		(63	)		—			(29	)		202
Net income	$	5,585		$	3,871		$	15,145		$	14,593
Earnings per common share — Basic:
Income from continuing operations	$	0.14		$	0.10		$	0.38		$	0.33
Income (loss) from discontinued operations		—			—			—			0.01
Net income	$	0.14		$	0.10		$	0.38		$	0.34
Earnings per common share — Diluted:
Income from continuing operations	$	0.14		$	0.10		$	0.37		$	0.33
Income (loss) from discontinued operations		—			—			—			—
Net income	$	0.14		$	0.10		$	0.37		$	0.33
Shares used in computing earnings per common share (2):
Basic		40,295,932			40,058,234			40,253,498			43,533,157
Diluted		40,599,162			40,274,160			40,553,092			43,738,518

(1)	Includes stock-based compensation expense of $1.6 million and $3.3 million for the three and six months ended January 27, 2007, respectively, and $0.9 million and $1.9 million for the three and six months ended January 28, 2006, respectively.
(2)	The Company purchased 8.76 million common shares on October 11, 2005 pursuant to a “Dutch Auction” tender offer.